Building a Q1 2019 Highlights Multi-Asset Mid-Tier TSX:TGZ / OTCQX:TGCDF Friday, May 3, 2019 West African Gold Producer
Forward-Looking Statements All information included in this presentation, including any information as to Teranga’s future financial or operating performance and other statements that express management’s expectations or estimates of future performance, other than statements of historical fact, constitute forward-looking information or forward-looking statements within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date hereof. Forward-looking statements are included for the purpose of providing information about management’s current expectations and plans relating to the future. Wherever possible, words such as “plans”, “expects”, “scheduled”, “trends”, “indications”, “potential”, “estimates”, “predicts”, “anticipate”, “to establish”, “believe”, “intend”, “ability to”, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, or are "likely" to be taken, occur or be achieved, or the negative of these words or other variations thereof, have been used to identify such forward-looking information. Specific forward-looking statements include, without limitation, all disclosure regarding future results of operations, economic conditions and anticipated courses of action. Although the forward-looking statements contained herein reflect management's current beliefs and reasonable assumptions based upon information available to management as of the date hereof, Teranga cannot be certain that actual results will be consistent with such forward-looking information. Such assumptions include, among others, the ability to obtain any requisite governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic conditions, anticipated future estimates of free cash flow, and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements. The risks and uncertainties that may affect forward-looking statements include, among others, the inherent risks involved in exploration and development of mineral properties, including government approvals and permitting, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond the control of Teranga. For a more comprehensive discussion of the risks faced by Teranga, and which may cause the actual financial results, performance or achievements of Teranga to be materially different from estimated future results, performance or achievements expressed or implied by forward-looking information or forward-looking statements, please refer to Teranga’s latest Annual Information Form filed with Canadian securities regulatory authorities at www.sedar.com or on Teranga’s website at www.terangagold.com. The risks described in the current Annual Information Form (filed and viewable on www.sedar.com and on Teranga’s website at www.terangagold.com) are hereby incorporated by reference herein. Teranga disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. Nothing herein should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities. All references to Teranga include its subsidiaries unless the context requires otherwise. This presentation contains references to Teranga using the words “we”, “us”, “our” and similar words and the reader is referred to using the words “you”, “your” and similar words. All dollar amounts stated are denominated in U.S. dollars unless specified otherwise. 2
Richard Young President & CEO
2019 Has All The Makings of Another Good Year • Record quarterly • On budget and well • Completed Afema gold production of on schedule • Released early- economic 71,946 ounces • On track for stage initial evaluation for • Per ounce cost commissioning in resource estimate government metrics improved Q3 and ramp-up of • Ongoing studies to • Conducted YoY production in Q4 advance towards airborne magnetic • On track to achieve • Completed first of feasibility stage and radiometrics 2019 production & two resettlement survey cost guidance areas 4
Paul Chawrun Chief Operating Officer
Highest Ever Quarterly Gold Production at Sabodala Quarterly Production (koz Au) 72 68 65 64 59 58 57 56 51 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 6
Strong Operational Quarter Mining Moved almost 9 million tonnes – a 1% increase Sabodala 15% increase in head grade YoY to 2.33 g/t Au Mine License Senegal, West Africa Milling Sabodala Milled more than one million tonnes Gold recovery rate of 92% Niakafiri Kerekounda Sabodala Village Resettlement Golouma New village construction and related infrastructure West Koulouqwinde Plant on target for H1 2020 completion …. Haul Road Mineral Resources Drilling of Niakafiri deposit to commence in 2020 Golouma Style High Grade Gold Trend Masato Style Bulk Tonnage Gold Trend Mining Concession Exploration Permit 7
Positive Grade Reconciliation to Reserves Grade Mined Q1 FY NI 43-101 Mine Plan (1) Actual Guidance 1.50 g/t – 2.00 g/t 2019 2.23 g/t 1.41 g/t Refer to Endnote (1) in Appendix 8
Unit Costs Running Within or Below Guidance Ranges Mining Costs ($/t mined) Total Cash Costs* ($/oz Au) Milling Costs ($/t milled) 2019 Guidance: $2.50 - $2.75 2019 Guidance: $725 - $775 2019 Guidance: $12 - $13 5% Decrease $659 $627 7% $11.52 $11.53 Decrease $2.79 $2.60 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 9 *Refer to Appendix – Non-IFRS Performance Measures
Wahgnion : On Budget & Well on Schedule 4 million man hours worked without a Lost Time Injury 98% of concrete poured 70% of structural steel installed 35% of mechanical equipment completed including SAG and Ball mills 15% of electrical and instrumentation completed Tailings storage facility near done including outer embankments and liner installation Main camp area, mine services area, plant & admin building completed Completed first of two resettlement sites Power Station – Bulk Fuel Facility, April 2019 10
Ma North Golden Hill: Moving Towards a Feasibility Study Ma Main Golden Hill Ma East (Burkina Faso, West Africa) Exploration licenses:468 km 2 644,000 oz 415,000 oz (2) (2) at 1.68 g/t at 2.02 g/t Nahiri Plateau Nahiri Inferred Indicated Initial Resource Highlights Gogoba West Excellent along trend and to-depth continuity of gold mineralization at all prospects drilled Geology Provides solid base from which to grow Golden Hill Tarkwaian Type Sediments Jack Hammer Hill Reaffirms interpretations that each prospect offers substantial upside Volcano Sediments for size expansion Mixed Volcano Sediments & Volcanics Basalt Peksou North To move into feasibility stage, preliminary technical, environmental Grantoid and social studies are being conducted to serve as basis for an Batholith eventual environmental and social impact assessment in support of Peksou C-Zone a preliminary economic estimate B-Zone A-Zone For full details on Golden Hill, please visit www.terangagold.com 11 Refer to Endnote to (2) in the Appendix
Numerous Structures Identified by Airborne Geophysical Survey of Afema Sefwi-Bibiani Ahafo Gold Belt Asankrangwa 17 Moz Ashanti Gold Belt Newmont Gold Belt Kumasi Konogo Afema Q1 2019 Exploration Update Esaase 1.4 Moz Côte d’Ivoire Ghana Bibiani 5.19 Moz Signature Metals • Completed high-definition airborne 7 Moz Obotan Resolute magnetic and radiometric survey of both 5.5 Moz Akyem Asanko Newmont the mine license and regional permits Chirano 3 Afema Obuasi 41 Moz 5 Moz Anglo Gold Ashanti Exploration • High quality survey data outlines Kinross Permits numerous fault zones, cross-structures, Kubi 0.9 Moz Edikan Asaute Gold Corporation 6.6 Moz lithologic contacts and areas of folded Perseus stratigraphy on mince license Bogoso/Prestea • Compelling imagery worthy of extensive 18 Moz Winneba-Kibi Damang 7.1 Moz Gold Star follow-up Gold Belt Goldfields Tarkwa 24 Moz Afema Mining Permit Iduapriem 8.2 Moz AngloGold Ashanti Cape Coast 12 Reduced-to-Pole Magnetic Intensity
Encouraging Results Warrant Ongoing Follow-up at Miminvest Properties Randgold Guitry Complex (includes Sangaredougou) • Completed a mechanical trenching program where we Dianra discovered an extensive 3x7 kilometre gold-in-soil geochemical anomaly in 2018 Côte d’Ivoire • Encouraging results warrant further trenching and follow-up • RC and diamond drilling planned late 2019 Perseus Dianra Endeavour Newcrest • Initial phase of exploration outlines follow-up targets Endeavour Afema Guitry Sangaredougou 13 Operating Gold Mine/ Development Project
Navin Dyal Chief Financial Officer
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